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Price Jumps Lil Likely ely With New Phase Please 4 WASHINGTON UPI The price freeze ends and Phase 4 begins at midnight today for most of the economy almost two years to the day after President Nixon began his temporary experiment with wage- wage price controls Starting Monday prices for most all goods and services except beef and petroleum products are are free freeto freeto freeto to rise within a range laid out under undera a complex framework of rules ad ad- administered administered ministered by the Cost of Living Council However since the biggest cor cor- corporations corporations will have to give 30 days advance notice to the government before boosting prices consumers wont won't be feeling the weight of some price boosts until mid Phase 4 rules also require businessmen to cut prices under certain conditions but reductions are For an idea of what to expect with Phase 4 and an analysis of economic controls see Opinion page 58 likely to be rare Instead administration economic controllers are warning shoppers to brace for a new inflationary surge as companies race to markup prices that were held in check during the two-month two freeze The freeze is being thawed gradually in order to prevent a sud sud- sudden sudden sudden den price explosion and give the economy time to absorb the higher prices that the government concedes are on the way Thus food prices except beef were unfrozen July 13 The freeze will be lifted on most other prices at 1159 pm p.m. EDT today However gasoline home heating oil and other petroleum products will remain covered an extra week until Aug 19 19 and beef will remain under price ceilings until Sept 12 The standard for wage increases remains the same as Dei ore oo aa 1 per percent percent percent cent a year for wages and 02 per percent percent percent cent for fringe benefits Despite administration attempts to tomake tomake tomake make the expected price boom as palatable as possible consumers may find some increases hard to swallow f Food prices particularly will con con- continue continue continue to be a headache Last week the Agriculture Department predicted shoppers would pay 20 per percent percent percent cent more for groceries in 1973 than thana a year earlier If the forecast holds true it would be the biggest bl est one- one Continued on Page 12 Phase 4 4 Continued From Page 1 year jump ump in retail food prices since 1947 IMi When hen heni Nixon i. on startled the nation b by b imposing an the board day 90 da wage price freeze on Aug 15 15 1971 he called it a temporary measure that would lick tick excessive inflation without the mandatory mandator wage and price controls that crush economic and personal freedom The medicine seemed to work Under the subsequent Phase 2 program in effect from November 1971 until last January inflation cooled dramatically But when tough wage price stan stan- standards standards standards dards were scrapped for the tiE Phase 3 program of voluntary guidelines from January to last June prices accelerated at the fastest pace in 22 years ears elIs Nixon i. n stepped in June 13 with a anew anew anew new price freeze tobe followed by bj a 1 i tough comprehensive Phase 4 program designed to return the na na- nation nation tion once and for all to a free market economy The Presidents President's top economic advisers ad- ad most of whom whore share Nixons Nixon's distaste for controls have ha declined to state how long Phase 4 will last But Phase 5 5 they insist will be phase out Here is the basic rule governing go puce increases under Phase 4 4 A 1 may add a i penny to its iUs s for every er tent Cent it incurs in higher labor laboi rau i u material i and other tots costs However nothing extra can tan bo bl added for foi pi profit of it The biggest bluest companies those with annual t sales ale of more than million must give the Cost of Living Council 30 days advance notice be be- before before before fore boosting prices prices Recognizing Re o that a 2 per cent in increase in- in increase increase crease might be overly generous in one industry but a hardship in an an- another other the council has published separate price rules on top of that general guidelines for retailers wholesalers and the food health insurance and petroleum industries

Price Jumps Lil Likely ely With New Phase Please 4 WASHINGTON UPI The price freeze ends and Phase 4 begins at midnight today for most of the economy almost two years to the day after President Nixon began his temporary experiment with wage- wage price controls Starting Monday prices for most all goods and services except beef and petroleum products are are free freeto freeto freeto to rise within a range laid out under undera a complex framework of rules ad ad- administered administered ministered by the Cost of Living Council However since the biggest cor cor- corporations corporations will have to give 30 days advance notice to the government before boosting prices consumers wont won't be feeling the weight of some price boosts until mid Phase 4 rules also require businessmen to cut prices under certain conditions but reductions are For an idea of what to expect with Phase 4 and an analysis of economic controls see Opinion page 58 likely to be rare Instead administration economic controllers are warning shoppers to brace for a new inflationary surge as companies race to markup prices that were held in check during the two-month two freeze The freeze is being thawed gradually in order to prevent a sud sud- sudden sudden sudden den price explosion and give the economy time to absorb the higher prices that the government concedes are on the way Thus food prices except beef were unfrozen July 13 The freeze will be lifted on most other prices at 1159 pm p.m. EDT today However gasoline home heating oil and other petroleum products will remain covered an extra week until Aug 19 19 and beef will remain under price ceilings until Sept 12 The standard for wage increases remains the same as Dei ore oo aa 1 per percent percent percent cent a year for wages and 02 per percent percent percent cent for fringe benefits Despite administration attempts to tomake tomake tomake make the expected price boom as palatable as possible consumers may find some increases hard to swallow f Food prices particularly will con con- continue continue continue to be a headache Last week the Agriculture Department predicted shoppers would pay 20 per percent percent percent cent more for groceries in 1973 than thana a year earlier If the forecast holds true it would be the biggest bl est one- one Continued on Page 12 Phase 4 4 Continued From Page 1 year jump ump in retail food prices since 1947 IMi When hen heni Nixon i. on startled the nation b by b imposing an the board day 90 da wage price freeze on Aug 15 15 1971 he called it a temporary measure that would lick tick excessive inflation without the mandatory mandator wage and price controls that crush economic and personal freedom The medicine seemed to work Under the subsequent Phase 2 program in effect from November 1971 until last January inflation cooled dramatically But when tough wage price stan stan- standards standards standards dards were scrapped for the tiE Phase 3 program of voluntary guidelines from January to last June prices accelerated at the fastest pace in 22 years ears elIs Nixon i. n stepped in June 13 with a anew anew anew new price freeze tobe followed by bj a 1 i tough comprehensive Phase 4 program designed to return the na na- nation nation tion once and for all to a free market economy The Presidents President's top economic advisers ad- ad most of whom whore share Nixons Nixon's distaste for controls have ha declined to state how long Phase 4 will last But Phase 5 5 they insist will be phase out Here is the basic rule governing go puce increases under Phase 4 4 A 1 may add a i penny to its iUs s for every er tent Cent it incurs in higher labor laboi rau i u material i and other tots costs However nothing extra can tan bo bl added for foi pi profit of it The biggest bluest companies those with annual t sales ale of more than million must give the Cost of Living Council 30 days advance notice be be- before before before fore boosting prices prices Recognizing Re o that a 2 per cent in increase in- in increase increase crease might be overly generous in one industry but a hardship in an an- another other the council has published separate price rules on top of that general guidelines for retailers wholesalers and the food health insurance and petroleum industries